Today, the Atlas Line produced a Long signal at 1857.75 as seen on the chart. The doorbell sound was heard, as the Atlas Line can be configured to play sound file for the main Long and Short signals. John Paul’s Limit order was filled at the desired price. His catastrophic stop was at 1853.75, four points below the entry. In most cases, the catastrophic stop is not hit; it’s just there as a safety net. From this point, John Paul manages the trade by tightening the profit target slightly to 1859.50 (1.75 points of profit, if hit). Right away, price approached his profit target. Price danced around, retracing values it reached previously. As he says, markets love to retreat back to tested waters regularly. Within 10 minutes, price broke through the profit target, earning the 1.75 points (or $87.50 profit with one contract, $1050 with 12 contracts as seen here). Remember, the ES is worth $12.50 per tick and there are four ticks per point. 1.75 / .25 = 7 ticks x $12.5 = $87.5 (1 contract) or x 12 = $1050 (12 contracts).
Remember, you can get these same exact Long and Short entries on your charts everyday. Click the link above to find out more about the Atlas Line.
John Paul shows his price action trading setup with the BarTimer and ATR. You can’t trade the markets the markets are slow compared to when they are fast. For example, he prefers larger stops when the market is fast to avoid getting stopped out prematurely. In many cases, overnight trading leads to choppy back and forth movement, which is very difficult to trade. See an example at about 7:30 in the video. This choppy activity usually corresponds to the ATR. If the ATR value is too low, it’s not worth trading. You’re better off waiting for the market to wake up as seen around the 11:00 mark.
Starting around 11:20, you can learn how to trade news events. It’s better to stay out while the market is chaotic for five or 10 minutes and then re-enter when the volatility subsides.
At 13:00, take a look at the Atlas Line orders for the day. Besides the long and short order signals, there is a bias. When price is above the line, look for buying (long) opportunities. The opposite is true when price plots below the Atlas Line. At 20 minutes in, John Paul shows how the Atlas Line can be used for overnight trading (by adding another Atlas Line). You can set the MarketOpen parameter to begin at the time the desired market opens (e.g. “300″ for 3:00 a.m. Euro (6E) market open for trading in the US/Eastern time zone).
Tune in at 27:00 for the ABC method. On Feb. 24, 2014, the C part of the day offered a breakout entry opportunity to the short side. Multiple ABC trading days are discussed along with the basics of price action.
Take a look at the above charts from today, February 14, 2014, and you’ll notice some very good long and short trades on the ES (E-mini S&P 500) and the 6E (Euro FX). Let’s be clear – what you’re looking at his the Trade Scalper software that comes with the Trade Scalper course. The Trade Scalper software is programmed for NinjaTrader only. Don’t have NinjaTrader or want to use NinjaTrader alongside your main platform? We can provide you with a demo copy of NinjaTrader and a live (demo) data feed for you to use. Don’t want to use NinjaTrader? Don’t worry – you don’t even have to use the Trade Scalper software because you are fully taught the method in the 100 page course plus the free, live training with John Paul. That’s right – you can trade independently of any indicator-type software because the rules are price action based. The live training will occur early next week, so it’s a good idea to purchase now and study up before the live training.
A couple points about what makes the Trade Scalper different from our other methods:
• It uses 1-min charts (short time frame) compared to the 5-min charts the Atlas Line and other strategies use.
• Since it’s a scalping method, you’re looking to get in and out quickly. Less time waiting for trades to occur. More opportunities.
• Tight profit targets and stop loss. Are the markets suddenly slowing down too much for your primary trading method? The Trade Scalper needs less market activity.
• You can trade it almost 24 hours a day.
• Trade nearly any future or currency market.
With purchase, you also get the bonus Floor Trader Secrets Manual. This strategy, also called the X-5, is effective on 5-min E-mini charts. It’s a digital course and you can fully trade it without any software.
Janet Yellen, the new Fed chairwoman, spoke on Tuesday, February 11, 2014 at 8:30 a.m. EST. When the Fed chair speaks, the market usually gets more volatile for several minutes. You can imagine how traders waited anxiously to see how her first public address would affect the markets.
How could you have traded Tuesday’s news event? Of course, we always recommend that you stay out of the markets when such substantial trading news events occur. However, we teach a free trading strategy that lets you trade these news events. See the video below. For this news event, we waited for two consecutive closing bars above the high of the volatile news bar. The second closing bar occurred at 11:15 a.m., which was our entry long. The proceeding 10 candles on the 5-min chart were bullish to our favor. The profit target, based on the current ATR value, was hit soon after for a total of +2 points ($100 x the amount of contracts you’re trading, excluding slippage and broker or exchange fees).
This video from May 1, 2012 will show you exactly how to take advantage of news events:
On January 7, 2014, John Paul conducted a live webinar where he answered questions, went over the Atlas Line, and gave his predictions for the upcoming year.
The presentation starts off with using the Bloomberg Economic Calendar to find out what caused the unusually large price bar at around 8:35 a.m. EST. This move was due to employment news.
At around the 5:00 minute mark, the Atlas Line’s signals are explained. Simply put, when price is above, go for long trades. When below, go with short trades. The real-time value of the ATR determines the profit target and stop loss values. Two closing bars above the plotted line indicate that you should enter the market long (buy the market). The opposite indicates entering short (selling the market). There are three stops used to manage Atlas Line trades: Catastrophic, Time-based and Proof. It’s easy to be objective when you know exactly when to get out of a trade. When entering a trade, you want to see an immediate result. If you’re not getting that result, you need to have an exit plan, in the form of a stop loss. You will take either the profit target or whatever stop loss of the three comes first. Since the profit target and stop loss values are based on the ATR, they are realistic. The target and stop are based on real values the market is capable of producing in real-time conditions. This keeps you emotionally out of the game, objectively in the game, and equipped with a plan.
Watch the whole video to see how our various price action strategies are put to the test.
With January 2014 coming to a close, John Paul has released the highly anticipated January Effect prediction for how the trading year will trend. Using the January Effect, he is able to determine (with reasonable accuracy) if the E-mini trading price will be higher or lower at the end of 2014 compared to the current trading price at the end of January, 2014.
On January 2, 2014 the E-mini closed at 1837. At the close of January, 2014, the E-mini price was at 1777.00. Since January 2014 was a down month, the January Effect tells us that the end of January 2014 will be below 1777.00 (a down-trending, bearish year).
How can you trade this expected bearish activity? Instead of looking for breakouts like you did in 2013 with the bullish January Effect prediction, look for support and resistance opportunities. In an upcoming video, John Paul will show you how to trade this support and resistance. In the meantime, we encourage you to look back at previous years and see how successful the January Effect was and what trading opportunities were available.
Why use the 5-min chart?
Regardless of the day trading platform you use, you will have the ability to switch time frames on your chart. For minute-based charts, NinjaTrader provides everything from a 1-min to a Yearly chart. When using a 5-min chart, you have the best of both worlds: a summarized chart (not too much data) and the ability spot moves seen on all the multiples of five minutes (10, 15, 1-hour, etc.). For example, news events will inevitably occur and they can influence price greatly for five to 15 minutes on average. If you’re using a 5-min chart, you can make an immediate decision to enter the market long or short instead of waiting around for the current 15-min (or longer) candle to form.
What is front-running?
Front-running is often used as a negative term in describing brokers and investment institutions who act against the interest of their clients in the markets. At Day Trade to Win, John Paul’s use of the term describes a strategy in which you place your targets and entries one tick in front of everyone else to ensure you get filled. Order fulfillment is on a first-come, first-served basis, so becoming first in line is an effective strategy in getting what you want out of the markets. You can use this strategy with nearly any market.
A new Group Private Mentorship class begins February 11, 2014. Eight weeks of live training with John Paul will teach you everything you need to know to successfully trade futures and currencies. All courses and software are included with lifetime licenses. This new session has classes twice each week.
We expect this new session to fill up quickly. It’s a good idea to reserve your seat as soon as possible.
Remember, group training includes:
• Eight weeks of live training with DTTW founder John Paul
• Each training session is recorded for future playback reference
• All courses and software with lifetime licenses and digital books
• In total, 11 unique methods to trade price action are taught – unlike anything you’ve traded before
• Training goes above and beyond the written material
• Look at each day’s activity and ask questions to improve your understanding with expert insight
So you’re now using NinjaTrader and you’re struggling with the concepts of placing trades? Look no further! Watch the video and in 15 minutes, you’ll have a good understanding of different order types, ATM Strategies, and execution.
One of the most important-to-know yet misunderstood aspects of day trading is order placement. The NinjaTrader platform, which we are big advocates of, allows you to place orders using two features. The first of which is Chart Trader, which is quite basic. It lets you trade from the chart itself. The more powerful way to place orders is using NinjaTrader’s SuperDOM. There are two flavors of the SuperDOM: Dynamic and Static. They are very similar as discussed here. Market orders are the most simple of all orders. They tell NinjaTrader to get you in the market at the current price (or as close to it as possible). Limit orders and stop orders are discussed in the video as well as the importance of being in the front of the line. The ATM Strategy information is handy too, because you’ll automatically have a profit target and stop loss defined after your original order gets filled.
Today’s E-mini at 9:30 a.m. EST was priced at 1811.75. It ended the day at 1780.25. It was a big down day. This opportunity allows us to show you multiple Strength and Pullback Trades when price is severely trending. The Atlas Line was correct in deciding the market would be going short, as it advised sticking to the short side. You can see our recent trades on this page that show the Atlas Line strategy in action from 9:30 a.m. to noon, EST.
After purchase, we email you the Atlas Line software and instructions. We also provide you with a training video ahead of time to teach you how to use the Atlas Line. We also invite you to the next live training session, where John Paul shows you and a handful of other new Atlas Line users how to use the software. We also provide you with a recording of the live training session. Free support is provided for the duration of your license. Click here to go to the Atlas Line purchase page.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL.
ANY ADVISORY OR SIGNAL GENERATED BY DAY TRADE TO WIN IS PROVIDED FOR EDUCATIONAL PURPOSED ONLY. ANY TRADES PLACED UPON RELIANCE ON WWW.DAYTRADETOWIN.COM SYSTEMS ARE TAKEN AT YOUR OWN RISK FOR YOUR OWN ACCOUNT. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. WHILE THERE IS GREAT POTENTIAL FOR REWARD TRADING COMMODITY FUTURES, THERE IS ALSO SUBSTANTIAL RISK OF LOSS IN ALL TRADING. YOU MUST DECIDE YOUR OWN SUITABILITY TO TRADE OR NOT. FUTURES RESULTS CAN NEVER BE GUARANTEED. THIS IS NOT AN OFFER TO BUY OR SELL FUTURES OR COMMODITY INTERESTS.
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